Asian markets today: Nikkei 225, Kospi fall up to 2% on renewed US-Iran war in the Middle East

Asian markets opened lower on June 4, 2026, following Wall Street’s overnight declines as tensions between the US and Iran intensified, driving oil prices higher and raising concerns about inflation. Japan’s Nikkei 225 fell 1.74% after reaching a record high the previous session, while South Korea’s Kospi declined 1.25%, though the small-cap Kosdaq surged 3.83%. Australia’s S&P/ASX 200 dropped 1.14%, and mainland China’s CSI 300 lost 0.84%, with Hong Kong’s Hang Seng Index down 0.93%. The risk-off mood extended globally, with US stock markets retreating from record levels. The Dow Jones Industrial Average fell 1.21% to close at 50,687.07, the S&P 500 dropped 0.74% to 7,553.72, and the Nasdaq Composite declined 0.89% to 26,853.98. The small-cap Russell 2000 underperformed, driven by losses in financial and technology sectors. Oil prices and Bitcoin reacted to Middle East developments, with Brent crude reversing a three-day rally after a US-brokered ceasefire between Israel and Lebanon eased tensions, dropping over 1% to $96.50 per barrel. Bitcoin fell below $63,000, its lowest since early February, while gold rose 0.8% to $4,470 an ounce amid hopes for broader Middle East stability. Treasury yields fluctuated as Fed rate hike expectations persisted, with the 10-year yield dipping to 4.48% after earlier losses. Meanwhile, the yen remained near 160 per dollar following Bank of Japan Governor Kazuo Ueda’s remarks, which kept the possibility of a June rate hike open but uncertain. India’s Gift Nifty opened weaker at 23,346, about 170 points below its previous close, signaling cautious sentiment ahead of domestic trading. Analysts attributed the broader market downturn to heightened geopolitical risks and inflation pressures, despite temporary relief from the ceasefire announcement.